Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- increased at an annual rate of 3.6 percent in the third quarter of 2013 (that
is, from the second quarter to the third quarter), according to the "second" estimate released by the
Bureau of Economic Analysis. In the second quarter, real GDP increased 2.5 percent.
The GDP estimate released today is based on more complete source data than were available for
the "advance" estimate issued last month. In the advance estimate, the increase in real GDP was 2.8
percent (see "Revisions" on page 3). With this second estimate for the third quarter, the increase in
private inventory investment was larger than previously estimated.
The increase in real GDP in the third quarter primarily reflected positive contributions from
private inventory investment, personal consumption expenditures (PCE), exports, nonresidential fixed
investment, residential fixed investment, and state and local government spending that were partly offset
by a negative contribution from federal government spending. Imports, which are a subtraction in the
calculation of GDP, increased.
The acceleration in real GDP growth in the third quarter primarily reflected an acceleration in
private inventory investment, a deceleration in imports, and an acceleration in state and local
government spending that were partly offset by decelerations in exports, in PCE, and in nonresidential
fixed investment.
_________
FOOTNOTE. Quarterly estimates are expressed at seasonally adjusted annual rates, unless otherwise
specified. Quarter-to-quarter dollar changes are differences between these published estimates. Percent
changes are calculated from unrounded data and are annualized. "Real" estimates are in chained (2009)
dollars. Price indexes are chain-type measures.
This news release is available on BEA’s Web site along with the Technical Note and Highlights related
to this release. For information on revisions, see "Revisions to GDP, GDI, and Their Major Components".
_________
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 1.8 percent in the third quarter, the same increase as in the advance estimate; this index
increased 0.2 percent in the second quarter. Excluding food and energy prices, the price index for gross
domestic purchases increased 1.5 percent in the third quarter, compared with an increase of 0.8 percent
in the second.
Real personal consumption expenditures increased 1.4 percent in the third quarter, compared
with an increase of 1.8 percent in the second. Durable goods increased 7.7 percent, compared with an
increase of 6.2 percent. Nondurable goods increased 2.4 percent, compared with an increase of 1.6
percent. Services was unchanged in the third quarter; in the second quarter, services increased 1.2
percent.
Real nonresidential fixed investment increased 3.5 percent in the third quarter, compared with an
increase of 4.7 percent in the second. Nonresidential structures increased 13.8 percent, compared with
an increase of 17.6 percent. Equipment was unchanged in the third quarter; in the second quarter,
equipment increased 3.3 percent. Intellectual property products increased 1.7 percent, in contrast to a
decrease of 1.5 percent. Real residential fixed investment increased 13.0 percent, compared with an
increase of 14.2 percent.
Real exports of goods and services increased 3.7 percent in the third quarter, compared with an
increase of 8.0 percent in the second. Real imports of goods and services increased 2.7 percent,
compared with an increase of 6.9 percent.
Real federal government consumption expenditures and gross investment decreased 1.4 percent
in the third quarter, compared with a decrease of 1.6 percent in the second. National defense decreased
0.3 percent, compared with a decrease of 0.6 percent. Nondefense decreased 3.1 percent, the same
decrease as in the second quarter. Real state and local government consumption expenditures and gross
investment increased 1.7 percent, compared with an increase of 0.4 percent.
The change in real private inventories added 1.68 percentage points to the third-quarter change in
real GDP, after adding 0.41 percentage point to the second-quarter change. Private businesses increased
inventories $116.5 billion in the third quarter, following increases of $56.6 billion in the second quarter
and $42.2 billion in the first.
Real final sales of domestic product -- GDP less change in private inventories -- increased 1.9
percent in the third quarter, compared with an increase of 2.1 percent in the second.
Gross domestic purchases
Real gross domestic purchases -- purchases by U.S. residents of goods and services wherever
produced -- increased 3.4 percent in the third quarter, compared with an increase of 2.5 percent in the
second.
Gross national product
Real gross national product -- the goods and services produced by the labor and property
supplied by U.S. residents -- increased 3.9 percent in the third quarter, compared with an increase of 2.7
percent in the second. GNP includes, and GDP excludes, net receipts of income from the rest of the
world, which increased $13.7 billion in the third quarter after increasing $7.7 billion in the second; in the
third quarter, receipts increased $1.7 billion, and payments decreased $12.1billion.
Current-dollar GDP
Current-dollar GDP -- the market value of the nation's output of goods and services -- increased
5.6 percent, or $229.8 billion, in the third quarter to a level of $16,890.8 billion. In the second quarter,
current-dollar GDP increased 3.1 percent, or $125.7 billion.
Gross domestic income
Real gross domestic income (GDI), which measures the output of the economy as the costs
incurred and the incomes earned in the production of GDP, increased 1.4 percent in the third quarter,
compared with an increase of 3.2 percent (revised) in the second. For a given quarter, the estimates of
GDP and GDI may differ for a variety of reasons, including the incorporation of largely independent
source data. However, over longer time spans, the estimates of GDP and GDI tend to follow similar
patterns of change.
Revisions
The upward revision to the percent change in real GDP primarily reflected upward revisions to
private inventory investment and to nonresidential fixed investment that were partly offset by an upward
revision to imports and a downward revision to exports.
Advance Estimate Second Estimate
(Percent change from preceding quarter)
Real GDP................................................ 2.8 3.6
Current-dollar GDP...................................... 4.8 5.6
Gross domestic purchases price index.................... 1.8 1.8
Corporate Profits
Profits from current production (corporate profits with inventory valuation adjustment (IVA) and
capital consumption adjustment (CCAdj)) increased $38.3 billion in the third quarter, compared with an
increase of $66.8 billion in the second. Taxes on corporate income decreased $4.8 billion, in contrast to
an increase of $10.0 billion. Profits after tax with IVA and CCAdj increased $43.0 billion, compared
with an increase of $56.9 billion.
Dividends decreased $179.7 billion in the third quarter, in contrast to an increase of $273.5
billion in the second. The large third-quarter decrease primarily reflected dividends paid by Fannie Mae
to the federal government in the second quarter. Undistributed profits increased $222.8 billion, in
contrast to a decrease of $216.6 billion. Net cash flow with IVA -- the internal funds available to
corporations for investment -- increased $234.5 billion, in contrast to a decrease of $205.3 billion.
_________
BOX. Profits from current production reflect the depreciation of
fixed assets valued at current cost using consistent depreciation profiles.
These profiles are based on used-asset prices and do not depend on the
depreciation-accounting practices used for federal income tax returns. The IVA and CCAdj are
adjustments that convert inventory withdrawals and depreciation of fixed assets reported on a tax-return,
historical-cost basis to the current-cost economic measures used in the national income and product
accounts.
_________
Corporate profits by industry
Domestic profits of financial corporations increased $8.6 billion in the third quarter, compared to
an increase of $24.5 billion in the second. Domestic profits of nonfinancial corporations increased $13.0
billion, compared to an increase of $37.8 billion.
The rest-of-the-world component of profits increased $16.7 billion in the third quarter, compared
with an increase of $4.6 billion in the second. This measure is calculated as the difference between
receipts from rest of the world and payments to rest of the world.
Gross value added of nonfinancial domestic corporate business
In the third quarter, real gross value added of nonfinancial corporations increased, and profits per
unit of real value added increased. The increase in unit profits reflected an increase in unit prices that
was partly offset by increases in both unit labor costs and nonlabor costs incurred by corporations.
* * *
BEA's national, international, regional, and industry estimates; the Survey of Current Business;
and BEA news releases are available without charge on BEA's Web site at www.bea.gov. By visiting
the site, you can also subscribe to receive free e-mail summaries of BEA releases and announcements.
* * *
Next release -- December 20, 2013, at 8:30 A.M. EST for:
Gross Domestic Product: Third Quarter 2013 (Third Estimate)
Corporate Profits: Third Quarter (Revised Estimate)
* * *
Release dates in 2014
Gross Domestic Product
2013: IV and 2013 annual 2014: I 2014: II 2014: III
Advance... January 30 April 30 July 30 October 30
Second.... February 28 May 29 August 28 November 25
Third..... March 27 June 25 September 26 December 23
Corporate Profits
Preliminary... ...... May 29 August 28 November 25
Revised....... March 27 June 25 September 26 December 23